ASTROTECH CORP. (SPAB)

SPAB»Topics» Our spacecraft payload processing facilities are specifically designed to process satellites and other payloads and we would lose a substantial portion of their value if we no longer provided these services.

Our spacecraft payload processing facilities
are specifically designed to process satellites and other payloads and we would
lose a substantial portion of their value if we no longer provided these
services.

Our Astrotech spacecraft
processing facilities and the payload processing facilities for our Flight
Services business unit were built, specifically, to process satellites, our
modules, and integrated cargo carriers. Currently, our Astrotech facilities in
Titusville, Florida are depreciated using the straight-line method over their
estimated useful lives, which range from 16 to 40 years. If we were required to
terminate the processing businesses, the value of these facilities would be
significantly impaired. In addition to having to take a substantial write-down
of the value of our Titusville, Florida facility, if we attempted to sell this
facility, it is unlikely that we would be able to recover the amounts we have
invested. If we were able to sublease our leased facilities, we doubt such
subleases would be sufficient to cover our current rental payments. Due to our
substantial capital expenditures for our spacecraft processing facilities and
the limited uses of these facilities, the termination of operations at our
Titusville, Florida facility that we own, or one or more of our other leased
facilities could have a material adverse effect on our financial condition and
results of operations.

Our spacecraft payload processing facilitiesare specifically designed to process satellites and other payloads and we wouldlose a substantial portion of their value if we no longer provided theseservices.

Our Astrotech spacecraftprocessing facilities and the payload processing facilities for our FlightServices business unit were built, specifically, to process satellites, ourmodules, and integrated cargo carriers. Currently, our Astrotech facilities inTitusville, Florida are depreciated using the straight-line method over theirestimated useful lives, which range from 16 to 40 years. If we were required toterminate the processing businesses, the value of these facilities would besignificantly impaired. In addition to having to take a substantial write-downof the value of our Titusville, Florida facility, if we attempted to sell thisfacility, it is unlikely that we would be able to recover the amounts we haveinvested. If we were able to sublease our leased facilities, we doubt suchsubleases would be sufficient to cover our current rental payments. Due to oursubstantial capital expenditures for our spacecraft processing facilities andthe limited uses of these facilities, the termination of operations at ourTitusville, Florida facility that we own, or one or more of our other leasedfacilities could have a material adverse effect on our financial condition andresults of operations.

Our spacecraft
payload processing facilities are specifically designed to process satellites
and other payloads and we would lose a substantial portion of their value if we
no longer provided these services.

Our Astrotech spacecraft processing facilities and the payload
processing facilities for our Flight Services business unit were built
specifically to process satellites and our modules and integrated cargo
carriers. These facilities are not well suited for other uses. Currently, our
Astrotech facilities in Titusville, Florida are depreciated using the
straight-line method over their estimated useful lives which range from 16 to
40 years. If we were required to terminate our satellite or module processing
businesses, the value of these facilities would be significantly impaired. In
addition to having to take a substantial write-down of the value of our
Titusville, Florida facility on our books, if we attempted to sell this
facility we do not think that we would be able to recover the amounts we have
invested. If we were able to sublease our leased facilities, we do not think
such subleases would be sufficient to cover our current rental payments. Due to
our substantial capital expenditures for our spacecraft processing facilities
and the limited uses of these facilities, the termination of operations at our
Titusville, Florida facility that we own, or one or more of our other leased
facilities could have a material adverse effect on our financial condition and
results of operations.

Our spacecraft payload
processing facilities that are specifically designed to process satellites and other payloads as well as our modules and integrated cargo carriers would lose a substantial portion of their value if we no longer provided these services.

Our Astrotech spacecraft processing facilities and the payload processing facilities for our Flight Services business unit were built specifically
to process satellites and our modules and integrated cargo carriers. These facilities are not well suited for other uses. Currently, our Astrotech facilities in Titusville, Florida are depreciated using the straight-line method over their estimated
useful lives which range from 16 to 40 years. If we were required to terminate our satellite or module processing businesses, the value of these facilities would be significantly impaired. In addition to having to take a substantial write-down of
the value of our Titusville, Florida facility on our books, if we attempted to sell this facility we do not think that we would be able to recover the amounts we have invested. If we were able to sublease our leased facilities, we do not think such
subleases would be sufficient to cover our current rental payments. Due to our substantial capital expenditures for our spacecraft processing facilities and the limited uses of these facilities, the termination of operations at our Titusville,
Florida facility that we own, or one or more of our other leased facilities could have a material adverse effect on our financial condition and results of operations.